Hi,
General item category group determines the category of the item ,Like trading goods,service goods or finished goods.
The item category group determines how a material is processed in the sales order. It defines, for example, that pricing does not take place for a free of charge item, such as a business gift; or that inventory management is not carried out for a service. When processing sales and distribution documents, the system uses the item category group to determine the item category. The system determines the item category based on the item category group of the material and the current business transaction, and proposes it in the respective document.
When creating the material types non-stock material and services, DIEN is proposed in both cases for the item category group, because the order processing for both material types is identical: for example, pricing is carried out for both, but no availability check.
item category group determines whats the resulting item category for this material. This as you know we set in the item category determination. As we have several standard item cat groups like BANS(for third party), ERLA(pricing at header level for BOM), LUMF(pricing at item level) etc which help in determing the item category which inturn contrls the complete behaviour of that item in order, delivery as welll as billing.
regards
sadhu kishore
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